Why Is Unoccupied Commercial Property Insurance So Expensive?

(And How to Keep Your Empty Building Fully Covered)

Many commercial property owners only discover the real problem after their building becomes empty.

A tenant leaves.

The property goes up for sale.

Renovations begin.

A probate situation arises.

And suddenly, the insurer says:

“Your cover is now restricted because the property is unoccupied.”

This is where most people realise something important:

Standard commercial property insurance is not designed for empty buildings.

And this is exactly why unoccupied commercial property insurance exists.

What Is Considered an Unoccupied Commercial Property?

Most insurers legally class a property as unoccupied after:

• 30 days

• 45 days

• or 60 days without regular activity

After this period, many policies automatically:

• Remove cover for theft, vandalism, escape of water, malicious damage

• Apply strict inspection conditions

• Or reduce your cover to Fire Only

Many property owners don’t know this is happening until they read the small print, or try to claim.

Why Are Empty Commercial Buildings a Bigger Risk?

From an insurer’s perspective, an empty building is far more vulnerable to:

• Vandalism and malicious damage

• Squatters and break-ins

• Undetected leaks and burst pipes

• Fire and arson

• Weather damage going unnoticed

• Liability claims (falling brickwork, loose structures, unsafe access)

Buildings that are left empty are also more exposed to real-world risks beyond insurance — for example, properties without regular occupation can face a greater chance of fraudulent activity, such as unauthorised dealings or title changes, because there’s no daily presence to deter or detect suspicious actions — something highlighted in official guidance on how to protect land and property in the UK.

With no daily presence, problems grow unnoticed, and that’s why premiums are higher.

The Biggest Mistake Property Owners Make

They assume their existing insurer will “keep them covered”.

In reality, most insurers will:

• Only allow a short grace period

• Then impose severe restrictions

• Or refuse full cover altogether

This is especially common when a property is:

• Empty between tenants

• Under renovation

• For sale

• Part of a probate estate

• Unoccupied for several months or years

When Do You Need Unoccupied Property Insurance?

You typically need specialist cover when your commercial building is:

• Empty between commercial tenancies

• Being renovated (cosmetic or minor structural works)

• Up for sale

• Part of an estate/probate

• Unoccupied for more than 30–60 days

• Left vacant for long periods (even up to 5 years)

The Hidden Conditions Most Policies Don’t Explain

Many vacant property policies come with strict requirements such as:

• Weekly inspections

• Utilities switched off at the mains

• Post and rubbish removed regularly

• Letterboxes sealed

• Alarm and CCTV requirements

• Physical security measures on windows and doors

If these conditions are not met, claims can be declined.

This is why professional guidance is essential when arranging unoccupied building insurance.

What Can Unoccupied Commercial Property Insurance Cover?

A specialist policy can include:

• Fire, lightning, explosion, aircraft and subsidence as standard

• Optional flood, storm, malicious damage, riot and impact

• Owners’ liability protection

• Loss of keys

• Legal expenses

• Terrorism cover

• Employers’ liability (if required)

And importantly — policies available for 3, 6 or 12 months, ideal for short-term situations.

How to Reduce the Cost of Unoccupied Property Insurance

Insurers look very favourably on properties that have:

• Mains-fed alarms

• CCTV surveillance

• SIA security visits

• Window locks and security screens

• Good lighting

• Clear warning signage

• Regular inspections

• Utilities safely managed

These measures don’t just protect the property, they directly reduce your premium and widen the number of insurers willing to offer terms.

Why Specialist Advice Matters for Vacant Commercial Buildings

Unoccupied property insurance is not a standard product.

It’s a niche, specialist area where small details make a big difference.

Working with a broker who understands:

• Non-standard construction

• Renovation risks

• Long-term vacancy

• Clients with previous convictions or poor financial history

• Buildings insured up to £10,000,000

means you get proper cover, not just a policy that looks good on paper.

Final Thought: Empty Doesn’t Mean Risk-Free

An empty commercial building is often more exposed to risk than an occupied one.

And the longer it stays empty, the more important it is to have the right type of insurance, not just any insurance.

If your property is unoccupied, for sale, being renovated, or between tenants, arranging the correct Unoccupied Commercial Property Insurance is one of the most important steps you can take to protect your asset.

Need Insurance for an Unoccupied Commercial Property?

If your commercial premises are currently empty, or about to be, now is the time to review your cover properly with UK Sure.

Start a quote and make sure your building is protected the right way.